As the flow battery industry continues to grow, there is an increasing need for investment in capital. On April 22, 2025, it was reported that several companies are pursuing this segment aggressively. For example, a recent project focused on lithium-ion flow battery technology has received approval from the relevant authorities, leading to the initiation of a significant project titled “500MW Lithium Flow Battery Production Project” with a total investment of ¥9.7 billion.
The flow battery is gaining traction in the energy storage sector. Recent advancements, especially in lithium-ion technology, show promise for addressing energy demands. For instance, ongoing projects in regions like Hunan province are set to enhance the energy storage landscape significantly. The Chinese government has ambitious plans, aiming to have a cumulative installed capacity of 73.76 million kWh by 2024, which represents a 130% increase compared to 2023.
Notably, the energy storage sector is moving towards large-scale applications. The high safety standards and long cycle life of flow batteries make them a favorable choice for extensive energy storage systems. Furthermore, it is anticipated that flow battery technology will become more competitive as it matures, with several companies leading the charge in this evolving market.
As of March 2023, significant projects have already commenced, such as a 100MW/400MWh flow battery facility in Jiangshan city, with a total capital expenditure of ¥14 billion. This project highlights the integration of energy storage systems with various components, such as battery storage and renewable energy generation.
In a recent initiative, a 500MW/2GWh flow battery system has been established, alongside a 300MW/1200MWh facility. The total investment for these projects is estimated at ¥36.27 billion. By February, a new project targeting an overall investment of ¥80.8 billion has also been initiated, enhancing the energy storage capabilities across multiple regions.
Looking ahead, the flow battery industry has set ambitious targets. By 2025, the installed capacity is projected to reach 0.53GW, followed by a goal of 1.07GW by 2027. The corresponding market size is expected to be ¥58 billion and ¥109 billion, respectively. This growth trajectory is supported by the unique characteristics of flow batteries, such as high safety, long cycle life, and environmental adaptability.
Despite the challenges faced regarding initial capital costs, the industry is poised for significant advancements. Efforts are underway to streamline production processes and reduce costs, making flow batteries more attractive for widespread adoption.
In summary, the flow battery market is set for rapid growth, driven by technological advancements, supportive government policies, and an increasing demand for reliable energy storage solutions. Stakeholders are optimistic about the future, anticipating that flow batteries will play a crucial role in the transition towards sustainable energy systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/chinas-liquid-flow-battery-industry-faces-cost-challenges-amidst-growing-demand/
